August 9, 2013 Vol. 9

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1 Use of Smartphones in 14 Asian Cities August 9, 2013 Vol. 9 Owne of either a mobile phone or a smartphone is at least 90% in all 14 Asian cities Males & females in their 20s drive smartphone in Asia. They use them mainly as social media tools In cities with high smartphone (Seoul, Hong Kong, Singapore, Taipei), TV, computer and smartphone have become the Big Three media To support marketing communication in the global market place, Hakuhodo has conducted its Global HABIT survey of sei-katsu-sha 1 each year since Conducted in major cities in Asia, Europe and the United States, the survey polls middle- and high-income earners. Results of analysis are released regularly. This time, we report results of analysis of smartphone 2, service usage and length of media contact in 14 Asian cities. 1. Mobile devices (whether mobile phone or smartphone) are now a major media in the cities of Asia While household of a computer varies from around to 100% across the cities, personal of a mobile phone or smartphone is almost universal, at over 90%, in all the cities surveyed. Comparing personal of mobile phones and smartphones, we found three groups of cities; (1) cities where smartphone is high, (2) cities where smartphone and mobile phone are roughly the same, and (3) cities where mobile phone is still the norm. It looks like Asia is in a period of gradual transition from mobile phone to smartphone. 2. Looking at sex and age group, it is males and females in their 20s who are driving smartphone Across Asia overall, males and females in their 20s are driving the spread of smartphones. In cities with smartphone rates of at least 60% (Seoul, Hong Kong, Singapore, Taipei), smartphones have spread amongst to age groups from teens to 50s, not just those in their 20s. In cities were smartphone is in the 40% 59% range (Beijing, Shanghai, Guangzhou), smartphones are yet to spread to the older age cohorts. In cities with rates of less than, the situation varies from city to city, but in Bangkok and Jakarta, smartphone is highest among female teens; this pattern of smartphone is unique to these two cities. 3. In cities with low rates of smartphone, the most common /functions used are social media-related In used frequently for non-work purposes, use in all cities centers around social media and means of communication. In cities with high smartphone, use of search and functions typically used on computers and traditional mobile phones is also high. Conversely, in cities with low smartphone, social media use accounts for the top spots. 4. The place where the Internet is most commonly accessed by smartphone is at home Internet access by smartphone happens most often in the home. In some cities, out-of-home use while riding or waiting for trains/buses and at the office is also growing. In the cities with the top 7 rates of smartphone and in Kuala Lumpur, the out-of-home usage total exceeds that of at home. 5. In the cities with high smartphone, TV, computers and smartphones have become the Big Three media In Seoul, Hong Kong, Singapore and Taipei, the cities with high rates of smartphone, total contact with the mass media and digital media is some 8 10 hours per day. Smartphone-based use of the internet is over 70 minutes per day, too, the third-longest contact after computer-based use of the Internet and watching TV. In the cities with low smartphone, total contact with digital media is low, but TV viewing is over 140 minutes. Among such cities, Kuala Lumpur stands out, with TV viewing of 167 minutes per day. 1 Sei-katsu-sha are more than simply consumers, just as people s lives and lifestyles include more than just shopping. Hakuhodo introduced this term in the 1980s to emphasize its commitment to a comprehensive, 360-degree perspective on consumers lives. 2 Definition of smartphone (shown to survey respondents): A highly functional mobile device to which the user can add and many kinds of apps. In addition to making phone calls, it is equipped with such computer-like functions as Web browsing, , and document viewing and editing. Examples include the iphone, Blackberry, and Android mobile phones (smartphones running the Android operating system for mobile phones). 1

2 Details of the survey findings 1.Owne of computers, mobile phones and smartphones We compared household of a computer and personal of mobile phones and smartphones in the 14 Asian cities. (Note: Survey targets respondents with mid- to high incomes in each city) There is variation in household of computers from city to city, from around to 100%. However, there is no difference in the of either a mobile phone a smartphone or both, which at 90% or higher, is extremely high in all cities. In the 14 cities, even if they do not have a computer, most people own a mobile phone or smartphone as a means of communication, and such mobile devices can now rightly be called mass media. Breaking down personal of mobile phones and smartphones, there appear to be three main groups. Three cities with smartphone rates of at least 70% (Seoul, Hong Kong, Singapore), three cities where smartphone and mobile phone are about the same (Taipei, Beijing and Shanghai), and 8 cities where mobile phone exceeds smartphone (Guangzhou, Metro Manila, Kuala Lumpur, Mumbai, Bangkok, Ho Chi Minh City, Delhi and Jakarta). It appears that the cities of Asia are going through a period of transition from mobile phones to smartphones. Household of a computer Personal of a mobile phone or smartphone Note: Cities listed in descending order of household of a computer. Personal of a mobile phone Personal of a smartphone Note: Cities listed in descending order of personal of a smartphone. Source: HABIT Survey 2013 Owne amongst males/females aged in Tokyo: Mobile phones: 57.4% Smartphones: 58.9% 2

3 2. Personal smartphone by sex and age group Looking at the sex and age group breakdown of personal smartphone in each city, the overall trend in each city is high among males and females in their 20s. These groups lead in all cities. The detailed breakdown is as follows. In the four cities with smartphone of at least 60% (Seoul, Hong Kong, Singapore and Taipei), is high in a broad range of ages from teens to 50s, with highest among males and females in their 20s. Smartphones have spread to all age groups in these cities. Owne is extremely high, at over 90%, amongst males and females in their teens to 20s in Seoul and amongst males in their teens to 30s and females in their 20s in Hong Kong. In the three Chinese cities where is in the 40 59% range (Beijing, Shanghai and Guangzhou), smartphone is widespread amongst those in their teens to 30s, but not yet common amongst those in their 40s to 50s. The cities with rates below are probably in the early stages of smartphone adoption, and there is no one trend. In the two cities Jakarta and Bangkok, smartphone is highest among females in their teens, a trend not seen in any city. City Smartphone by cohort Males Females At least 60% to 59.9% Less than Seoul (n = 683) Hong Kong (n = 648) Singapore (n = 356) Taipei (n = 518) Beijing (n = 432) Shanghai (n = 396) Guangzhou (n = 340) Metro Manila (n = 217) Kuala Lumpur (n = 213) Jakarta (n = 186) Bangkok (n = 182) Ho Chi Minh City (n = 176) Mumbai (n = 126) Delhi (n = 75) Males at least 75% Females at least 75% Males at least 50% Females at least 50% Ovals mark the gender and age group with the highest rate in that city. 3

4 3. Services/Functions ( than calls) frequently used on smartphones We asked what and functions respondents frequently use on their smartphones for non-work purposes. Among the top ten functions cited, communications/social media functions have the highest counts in each city (see chart on the lower right). Looking at the top three /functions, all cited in the five cities Hong Kong, Singapore, Metro Manila, Jakarta and Bangkok are communications/social media-related (shaded yellow) (see chart on the lower left), backing up the idea that smartphones are used most as tools for communication/social media. Definition of the service/function groupings Communication/social media (yellow): short, , chat, using social, sending/accepting and, submitting/sending videos, using, posting comments on forums, visiting/posting comments on personal sites, playing online/social, etc. (basically, actions and activities with a particular or multiple/unknown s) Entertainment (pink): downloading/, watching videos, downloading, downloading ring tones Information/news (sky blue): reading/watching news, searching for Other (white): camera, Features of use of /functions in each city The four cities with smartphone of at least 60% Services/functions also used on computers and mobile phones fill the top spots: searching for and watching/ in Seoul, short and in Hong Kong, Singapore and Taipei. However, when the focus is restricted to those in their 20s, social rises in rank. (Results for using social among males/females aged 20 29: Seoul: No. 2 (69.5%), Hong Kong: No. 1 (89.2%), Singapore: No. 3 (63.9%), Taipei: No. 1 (82.5%)) The cities with smartphone of less than In Metro Manila, Kuala Lumpur, Jakarta and Bangkok, smartphones are used by many as social media communication tools, such as for using social. In emerging cities where smartphones arrived more recently, there seems to be a strong tendency toward the latest and functions being used as soon as they are launched. Meanwhile in Ho Chi Minh City, Mumbai and Delhi, smartphones are frequently used as a tool for searching for. Q. Aside from work, what /functions do you frequently use on a smartphone? (Multiple response; 28 options) Left table Right table At least 60% to 59.9% Less than City Seoul (n = 683) Hong Kong (n = 648) Singapore (n = 356) Taipei (n = 518) Beijing (n = 432) Shanghai (n = 396) Guangzhou (n = 340) Metro Manila (n = 217) Kuala Lumpur (n = 213) Jakarta (n = 186) Bangkok (n = 182) Ho Chi Minh City (n = 176) Mumbai (n = 126) Delhi (n = 75) (69.8%) (83%) (73.9%) (82.8%) (63.1%) (54.9%) (74.7%) (75%) (67.5%) (84.9%) (56.8%) (75.4%) (76.4%) (70%) Top 3 Count of items in the top 10 (68.6%) (79.2%) (61.6%) (72.3%) (57.3%) (51.6%) (54.2%) (53.8%) (52.6%) (65.6%) (66.7%) (62.5%) (65.1%) (75.4%) (59.6%) (72.3%) (52.5%) (38.3%) (50.8%) (46.2%) (38.9%) (62.3%) (58.3%) (57.5%) Communication / media Entertainment Information/ News Other

5 Reference: Top 10 /functions frequently used on smartphones Q. Aside from work, what /functions do you frequently use on a smartphone? (Multiple response; 28 options) r ship At least 60% to 59.9 % Less than City r ship City 85.4 Hong Kong (n = 648) Singapore (n = 356) Taipei (n = 518) Beijing (n = 432) Shanghai (n = 396) Guangzho u (n = 340) Metro Manila (n = 217) Kuala Lumpur (n = 213) Jakarta (n = 186) Bangkok (n = 182) Ho Chi Minh City (n = 176) Mumbai (n = 126) Delhi (n = 75) (69.8%) (83%) (73.9%) (82.8%) (63.1%) (54.9%) (74.7%) (75%) (67.5%) (84.9%) (56.8%) (75.4%) (76.4%) (70%) (68.6%) (79.2%) (61.6%) (72.3%) (57.3%) (51.6%) (54.2%) (53.8%) (52.6%) (52.6%) (66.7%) (62.5%) (65.1%) (75.4%) (59.6%) (72.3%) (52.5%) (38.3%) (50.8%) (46.2%) (38.9%) (62.3%) (58.3%) (57.5%) (60.9%) (66.7%) (45%) (71.9%) (39.6%) (44.7%) (65.3%) (32.8%) (43.3%) (45.4%) (38.9%) (44.3%) (58.3%) (47.5%) (60.4%) (66.4%) (44%) (63.6%) (38.9%) (43.7%) (32%) (35%) (42.9%) (30.5%) (41.8%) (58.3%) (47.5%) (60.2%) (41%) (54.9%) (33.4%) Online/social (37.7%) (52.3%) (22.7%) (32.5%) (33.6%) (27.4%) (40.2%) (47.2%) (37.5%) (54.3%) (61.2%) (36.8%) (54.7%) Online/social (20.5%) (34.9%) (50%) Posting/ sharing videos (21.9%) (31.7%) (31.1%) (25.3%) (36.9%) (44.4%) (35%) (52.4%) (52.9%) (31.6%) (53.7%) (17.4%) (32.7%) (35.7%) Posting comments on forums (18.8%) (24.2%) (31.1%) (22.1%) ringtones (21.3%) (37.5%) (35%) Watching videos (43.9%) (45.5%) Online/social (26.7%) (49.5%) (16.4%) (25%) ringtones (29.2%) (18.8%) (21.7%) (30.3%) (20%) (20.5%) (37.5%) (27.5%) (39.4%) Watching videos (41.2%) (25.7%) Watching videos (46.7%) (13%) ringtones (23.9%) (28.6%) Visiting/posting comments on personal sites (18%) Visiting/posting comments on personal sites (12.5%) / Posting/sharing videos (12.5%) (26.1%) (20%) Online/social (18.9%) (33.3%) Watching videos (25%) 5

6 4. Places where the Internet is accessed by smartphone The table below shows the places where the respondents access the Internet by smartphone. Places with usage rates of at least are shaded. Looking at the places where people access the internet on a smartphone, at home is the most common place in all cities. The out-of-home total is higher than at home in the four cities with high smartphone penetration (Seoul, Hong Kong, Singapore and Taipei), the three Chinese cities (Beijing, Shanghai and Guangzhou), and Kuala Lumpur. In the breakdown of out-of-home access, there are differences between the cities. These probably arise from differences in public transport infrastructure and wireless hot-spot availability. The use of wireless hot-spots is high even in emerging cities, such as Ho Chi Minh City, because they allow good access to the Internet even in places where smartphones are only starting to spread. At least 60% to 59.9% Places where the Internet is accessed by smartphone (multiple response) City At home Out-ofhome total School Office Out-of-home Internet caf é Wireless hot-spots at airports, hotels, coffee shops, shopping malls, etc. While riding or waiting for trains or buses In cars/taxis Seoul < Hong Kong Singapore Taipei Beijing < Shanghai Guangzhou Metro Manila Kuala Lumpur < Less than Jakarta Bangkok Ho Chi Minh City Mumbai Delhi At least At least 50% Out-of-home total: Total of school; internet café; wireless hotspots at airports, hotels, coffee shops, shopping malls, etc.; while riding or waiting for trains or buses; in cars/taxis 6

7 5. Average smartphone and media contact time (weekdays) The table below shows average total time of contact with the mass media and digital media (computer, mobile phone, smartphone) per day (in minutes). (In case of simultaneous contact with multiple media, contact time is counted for each media) In the four cities with smartphone rates of at least 60% (Seoul, Hong Kong, Singapore and Taipei), the average score for total contact with all media is over 450 minutes per day, with average contact with smartphones over 70 minutes per day. This is the third longest time, following computer and TV contact time. When media contact time is divided into mass media (TV, newspapers, magazines and radio) and digital media (computer, mobile phone and smartphone) contact, there are different trends in different cities. In Hong Kong and Taipei, mass media contact time and digital media contact time are both long, but total mass media contact is longer. In Seoul, contact time is about the same for both. In Singapore, total mass media contact time is slightly shorter, a similar trend to that of Seoul. In cities with smartphone of less than, total digital media contact time is short. However, TV contact time is over 140 min per day in all cities. In Kuala Lumpur, in particular, TV viewing time is extremely long, at 167 minutes, and the city s total mass media and digital media contact time stands out at 505 min. Q. How much time do you spend reading, watching, or using each media? (Weekdays) (min.) Total mass media Total digital media Overall Overall smartphone Seoul(n=800) Hong Kong (n = 800) Singapore (n = 500) Taipei (n = 800) Beijing (n = 807) Shanghai (n = 807) Guangzhou (n = 818) Metro Manila (n = 800) Kuala Lumpur (n = 800) Jakarta (n = 800) Bangkok (n = 800) Ho Chi Minh City (n = 800) Mumbai (n = 800) Delhi (n = 800) Tokyo (n = 649) Mass Digital media TV Radio Newspapers Magazines (weeklies, fashion, etc.) Internet accessed by computer Internet accessed by mobile phone Specialist/trade magazines Internet accessed by smartphone Total mass Total digital media(min.) media(min.) Seoul(n=800) Hong Kong (n = 800) Singapore (n = 500) Taipei (n = 800) Beijing (n = 807) Shanghai (n = 807) Guangzhou (n = 818) Metro Manila (n = 800) Kuala Lumpur (n = 800) Jakarta (n = 800) Bangkok (n = 800) Ho Chi Minh City (n = 800) Mumbai (n = 800) Delhi (n = 800) Tokyo( N=649) *Reference: Data of Tokyo is from Media Teiten Survey 2013: Conducted by Institute of Media Environment, Hakuhodo DY Media Partners Inc. Survey area: Metropolitan Tokyo, Osaka Pref., Aichi Pref., Kochi Pref. Respondents: Males/Females aged Postal survey. Sample structure: 2,614 samples. Survey period: February Mobile phone includes smartphone.

8 Overview of this report Cities surveyed (14 cities): Hong Kong, Taipei, Seoul, Singapore, Kuala Lumpur, Bangkok, Metro Manila, Jakarta, Ho Chi Minh City, Delhi, Mumbai, Beijing, Shanghai, Guangzhou Respondents: Males and females aged Sample size: 10,932 (excluding Tokyo) Survey period: Late May August 2012 Global HABIT is a comprehensive Hakuhodo survey and database that has grown to cover 34 major cities worldwide since Survey data is collected every year, enabling not only comparisons between cities, but also time-series comparison of single cities. Single-source Global HABIT surveys probe individual sei-katsu-sha lifestyles, values, media contact, purchase attitudes and use, and perceptions of brands in many categories. This enables analysis not only of brand users, but of brand supporters at differing levels of perception (would consider purchasing, favor brand, brand fans, etc.). Overview of Global HABIT 2012 survey Cities surveyed: Shanghai, Beijing, Guangzhou (China); Hong Kong; Taipei (Taiwan); Bangkok (Thailand); Seoul (Korea); Singapore; Kuala Lumpur (Malaysia); Metro Manila (Philippines); Jakarta (Indonesia); Ho Chi Minh City (Vietnam); Delhi, Mumbai (India); Frankfurt (Germany), Sao Paulo (Brazil). The cities Dalian, Shenyang, Wuhan, Chengdu, Hangzhou, Ningbo, Xian, Fuzhou (China); Sydney (Australia); Berlin (Germany); Paris (France); Milan (Italy); Madrid (Spain); New York, Los Angeles, Chicago (USA); London (UK) and Moscow (Russia) were surveyed in 2011 or earlier. Respondents: Either 500 or 800 males and females aged per city In Shanghai, Beijing and Guangzhou, an additional 1,800 male and female Chinese Power Sei-katsu-sha aged with incomes of at least 15,000 RMB are also surveyed. In Delhi and Mumbai, an additional 1,000 male and female Indian Power Sei-katsu-sha aged from SEC A2 or higher with monthly household incomes of at least 40,000 INR were also surveyed. Responses were obtained from persons in the middle/high income bracket of each city (50-90% of the urban population) based on screening by household income. Survey period: Late May early August 2012 Survey method: In-home interviews (Asian cities than Hong Kong, Taipei, Frankfurt, Sao Paulo) Individual interviews at a central location (Hong Kong, Taipei, Seoul) Main items surveyed (some apply only to China and Asian countries): Demographics and lifestyle Demographics, lifestyles, environmental awareness, country-of-origin image, media/ contact, shopping, hobbies, sports, durable consumer goods, category perceptions, travel, housing Product & service usage Insurance, credit cards, convenience stores, airlines, passenger cars, motorcycles, AV products, home appliances, mobile phones & smartphones, computers & printers, digital cameras & digital video cameras, copiers, watches, game consoles, alcoholic & non-alcoholic beverages, foodstuffs (instant foods, snack foods), toiletries, cosmetics, personal care products, sanitary products & disposable diapers HABIT Survey 2013: Conducted by R&D Div., Hakuhodo Inc. Survey area: 40 km radius of Tokyo, 20 km radius of Osaka. Respondents: Males/Females aged Self-administered survey. Approx. 5,000 samples. Survey period: Feb Mar 2013 Media Teiten Survey 2013: Conducted by Institute of Media Environment, Hakuhodo DY Media Partners Inc. Survey area: Metropolitan Tokyo, Osaka Pref., Aichi Pref., Kochi Pref. Respondents: Males/Females aged Postal survey. Sample structure: 2,614 samples. Survey period: February 2013 Contacts: Ken Odaka, Corporate Public Relations Div., Hakuhodo Inc. Tel: +81-(0)

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